William Hague: EU Powers Review 'Not About Referendum'

The government is to conduct a review of how European Union powers impact the UK, William Hague said today, but he denied it was laying the groundwork for a referendum.

In a statement to the Commons on Thursday afternoon, the foreign secretary said Whitehall departments would conduct investigations into the "balance of competences" after ministers pledged to look at how powers could be clawed back from Brussels to Britain.

He told MPs he hoped the inquiry would lead to "less cost, less bureaucracy and less meddling" in British life.

However Labour questioned the timing of the review, which is due to report back in 2014.

Shadow Europe minister Wayne David noted 2014 was "suspiciously close to the next election" and suggested it was designed to set the Tories up to include a pledge to hold a referendum in its next manifesto.

But Hague said the Whitehall review was a separate issue from the debate on whether there should be a referendum on membership of the EU.

"This work will help inform decisions on Britain's future path in Europe. It is not a consultation about disengaging or withdrawing from the EU," he said.

"We remain committed to our membership of the EU and to a strong and stable Europe," he said.

"This is not about a referendum," he added. However he acknowledged that the exercise, having been conducted, would be "immensely useful" if there were to be a referendum.

In an interview with the New Statesman magazine published on Thursday, he said the UK's power was reliant on its membership of the union.

"I find it a litle bit ironic that some people are suggesting for Britain a role comparable to that of say Norway or Switzerland," he said.

"Norway or Switzerland are two marvellous countries, I very much admire, the most advanced countries in the world in fact with great qualities of life. But I think Britain is expecting a bigger role in the world than small countries."

Writing on The Huffington Post on Thursday afternoon he said: "If Britain wants to hold its head up high, if we want to trade with the world and prosper, we can do so better without the drear suffocation provided by the Brussels establishment."

But former Labour minister Ben Bradshaw said it would be "a tragedy and a gross betrayal of our national interest if at this very time of crisis and uncertainty for Europe, we were to relegate ourselves to the margins".

"Usually when the Euro-phobes lash out like this, it’s because a nerve has been touched where they feel vulnerable. That would certainly appear to be the case here," he said in a blog post for The Huffington Post.